AMC Networks (NASDAQ: AMCX) saw its stock price plunge 5.38% in pre-market trading on Friday following the release of its third-quarter 2025 earnings report. The company's adjusted earnings per share of $0.18 fell significantly short of the $0.28 analyst consensus estimate, despite revenue of $561.74 million beating expectations of $549.01 million.

The entertainment company reported a 6.3% year-over-year decline in quarterly revenue, with its domestic operations segment seeing an 8% decrease to $485.72 million. While streaming revenues grew 14% to $174 million, driven by price increases, this was offset by a 13% drop in affiliate revenue and a 17.4% decline in advertising revenue. The company's transition from traditional cable to streaming continues to present challenges, as evidenced by the mixed results.

CEO Kristin Dolan emphasized that the third quarter marked a key milestone in AMC's shift to a global streaming and technology-driven content business, noting that streaming revenue will become the company's largest source of domestic revenue this year. Despite the earnings miss, Dolan highlighted that the company generated strong free cash flow and remains on track to meet its higher full-year target of $250 million. However, investors appear concerned about the ongoing challenges in AMC's traditional business segments as it navigates this transition.